DOGE, the token that powers the Dogecoin blockchain hit its highest level since early November in early Wednesday trade just shy of the $0.11 mark. The meme coin has since backed off from its earlier highs and is trading just under $0.1050, but is still up by around 2.5% on the day, in fitting with a broader cryptocurrency market rally that has also seen bitcoin rally by about 2.5%. Dogecoin price predictions thus remain bullish.

The rally in crypto markets on Wednesday comes despite consolidation in traditional asset classes ahead of what has been touted as a key speech from the chairman of the US Federal Reserve Jerome Powell later in the day. Investors across asset classes will be monitoring the speech for insights as to the pace at which the Fed will continue hiking interest rates in the months ahead. Most expect Powell to signal that the pace of rate hikes will be slowed to 50 bps at next month’s meeting following four successive 75 bps rate hikes.

Such confirmation could come as a boost to risk assets like crypto and stocks, whilst weighing on the US dollar, if it boosts the idea that Fed hawkishness has now peaked. Investors are also focused on key US inflation and manufacturing data on Thursday ahead of the November jobs report on Friday. Cryptocurrency traders want to see evidence that the US economy is cooling in order to back up the idea the Fed won’t need to be as aggressive with its tightening in the months ahead.

Dogecoin To Hit $0.16 If It Holds Above This Level

Dogecoin’s near-term technical picture is looking good. Since last Monday when it found support at its 100 and 200-Day Moving Averages around $0.0730, the cryptocurrency has been in an uptrend and has now convincingly broken above the key $0.09-$0.0950 balance area. If it can hold above this uptrend, a test of its earlier pre-FTX collapse monthly highs in the $0.16 area looks to be on the cards.

Dogecoin
Dogecoin in an uptrend, eyeing a test of $0.16. Source: TradingView

Dogecoin is currently up around 70% versus its mid-October levels. The cryptocurrency saw a massive surge late last month on speculation that Elon Musk, who just took over as Twitter CEO, might implement Dogecoin into a future Twitter-based payments system. Prominent crypto developer and Cardano founder Charles Hoskinson recently speculated that if Musk integrates crypto payments into Twitter, this could bring 200 million new users into the technology.

Dogecoin could be one of the chief beneficiaries of this, given Elon Musk is a big fan of the cryptocurrency. Traders will be hoping Twitter-based Dogecoin payments could sufficiently boost demand for the cryptocurrency. Some are making the price prediction that DOGE could retest its May 2021 record highs in the $0.76 area, if Musk announces Twitter integration. This would mark a more than 600% rally from current levels.

Dogecoin
Dogecoin back to ATHs on Twitter integration? Source: TradingView

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